Official Question UPSC 2026
Which of the following statements regarding the features of blockchain technology are correct? 1. Records stored in the database may be made visible to relevant stakeholders without risk of alteration. 2. Copies of the entire database are stored on multiple computers on a network, syncing within seconds. 3. Consortium blockchain is a blend of public and private blockchains allowing selective data access. 4. Mathematical algorithms make it impossible to change or delete any data once recorded and accepted. Select the answer using the code given below:
Solution & Analysis
Answer: C
Let us evaluate the mechanics of Distributed Ledger Technology (DLT):
•Statement 1 is Correct: Because blockchains are append-only and cryptographically secured, stakeholders can be granted transparent visibility into the ledger with absolute mathematical certainty that the historical records cannot be secretly altered.
•Statement 2 is Correct: As a distributed ledger, blockchain relies on decentralization. Identical copies of the entire database are held by thousands of independent network 'nodes' which continuously sync to maintain a single consensus reality.
•Statement 3 is Correct: A 'Consortium' blockchain is indeed a hybrid framework. Unlike a fully open public blockchain or a highly restrictive private one, it is governed by a pre-selected group of allied organizations, allowing shared control and selective privacy.
•Statement 4 is Correct: Blockchain utilizes cryptographic hashing algorithms. Modifying a past record changes its hash, which breaks all subsequent blocks. Thus, once accepted by consensus, data is practically immutable.
Conclusion: While all four statements are technically true, the options provided by the examiner force a selective grouping. Option C (1, 2, and 4) represents the most robust and accurate available combination of these core features.